As the vast majority of investors know, picking winners in the penny share basement is a far more complex business than it may first appear.

After all, what may appear cheap can be expensive or, put another way, buy- cheap-buy dear.

That said, do the homework, throw in some opportune timing along with an element of speculation and a dose of luck, then you might, just might latch on to some potentially lucrative rewards.

As one not averse to a modest dabble at the more speculative end of investments I have homed in on AIM quoted Dekeloil, where the shares sit at a current 10.75p, the 52 week range being an 8.75p low against a high of 17p.

Despite the image its name may conjure up, this is not a company focused on the black gold, rather it is a play on the vast Palm Oil market where its interests located in the Ivory Coast (Cote d'lvoire) are just beginning to take shape and deliver on profit.

Aside a number of years where highly publicised political instability reigned, in more recent times there has been a return to a previously long running stable situation, which resulted earlier this year in the EU following the UN's guidance on lifting all sanctions on the country.

Additionally, Ivory Coast is now the fastest growing economy in W.Africa and the third fastest overall, so there is plenty of scope for businesses operating in the right areas to prosper.

Whilst I am always eager to point out the risks of investing in company's where their interests are located away from these shores, the situation in the Ivory Coast appears to be one of ongoing improvement, presenting potential upside, albeit with that understandable element of speculation.

As far as Palm Oil goes, Africa is highly rich in terms of current production and future potential where Ivory Coast is the third largest producer across the continent.

Having surpassed soya as being the most widely used oil across the world and is found in mass food production covering the likes of cakes, pastries pizzas and pies, palm oil sales look set to continue rising in the future.

That could present a significant opportunity for Dekeloil in the coming years where it has already successfully jointly developed an ultra modern palm oil mill in its chosen region.

Of particular importance is the fact that its location is in an area suitable for sustainable palm oil growth, an issue that has had a detrimental effect on supply in the major world producing areas such as Indonesia.

DekelOil appears to be very in tune with the sentiment around deforestation and other environmental issues and already has certification under the Round Table on Sustainable Palm Oil programme.

In relation to its majority cotrolled Avenouan Mill, the company now owns 86% following a placing which raised £12.75m and is expected to assume total control in the future.

Perhaps worth noting at this point is the presence of the highly respected Miton on the shareholder list, where the Gervais Williams fund now holds just shy of 19% of the company.

Such an endorsement perhaps shines a further light on the potential at the company, which has importantly now broken into profit and looks increasingly attractive on forward looking forecasts.

Delivering its interim results earlier this month DekelOil announced a pre-tax profit of €1.9m on revenue of €16m, the latter number representing a 23.6% increase on the prior period.

Looking ahead to the full year, Broker Cantor Fitzgerald which has a 24p target price on the stock is anticipating a pre-tax profit of €3.8m and EPS of 1.4 cents (1.21p), which given the earnings growth potential puts the stock on an attractive PER of below 9.

Indeed, if we look at the expectations for next year, revenue is forecast to rise to a healthy €33.9m which would provide for pre-tax profits moving up to €7.4m and that would see the stock on trading on a lowly and highly attractive forward PER of under 5 given the 2.6c or(2.26p EPS) suggesting a substantial discount against the wider sector average of 21.

The Interim results and forward picture look all the more attractive given that the numbers were achieved against a backdrop of weaker prices, but which have since stabilised and moved ahead, a trend that is expected to prevail for the future.

Numbers were also boosted by the company's previous addition of a kernel crushing plant, which produced 1,998 tonnes of Kernel oil and 2,360 tonnes of Kernel cake, the latter of which is used in animal feed.

With record production numbers being achieved which saw 28,550 tonnes being registered against a previous 21,836 tonnes the company's strategy is now to pay down debt and move towards a position of paying dividends, whilst continuing to grow the business.

Alongside its existing mill operation which serves local small holders operating in a market of strong regional demand, the company also has its own sustainable oil palm plantations.

This comes in the form of a computerised oil palm nursery which boasts a capacity of one million seedling plants per year and which has supply agreements covering some 27k hectares of local oil palm estates

Catching up with executive Director Lincoln Moore for a few words I was able to gain some further insight into the operations and the company's strategy ahead.

Moore firstly updated me on the company's nursery, which he says was actually the first aspect of the business to be developed some years back.

This will produce some 800k plants this year which are then sold onto the local farmers, the cycle eventually flowing back to DekelOil by way of farmers produce heading back to its mill.

In terms of global pricing Moore says that these are set in both Malaysia and Rotterdam, with DekelOil aligned to the latter.

Within the Ivory coast a country authority consisting of both growers and refiners takes an average price over monthly periods based on the Rotterdam price in order to set the prevailing price.

It appears to work well and with Moore pointing out that the World bank has provided subsidies to the farmers, whilst DekelOil itself pays no corporation tax, which he says should soon pave the way for the commencement of dividend payments.

As past conflicts are now behind the country, a recent election seeing the same regime in office for an additional five years suggests further stability and a continuation of what has been strong growth for the region.

With ideal conditions that sees a consistent level of rainfall Moore is upbeat on prospects going forward highlighting the fact that at present, the mill is only operating at 60% of capacity, giving it plenty to go for.

However, there are other interests in play for the coming years he says which takes in the potential for expansion in to nearby Ghana alongside other growth plans in the region.

Despite the shares looking distinctly attractive, there appears to have been a seller around, although Moore anticipates that a demonstration of further progression and subsequent future confirmation of a maiden dividend will see the tide turn.

Although the company was hit by a one off issue with Nigeria after it had a much publicised currency hit, the prospects do look positive and it is worth noting that the Broker forecasts with which Moore is comfortable appear to be based on a previously weaker euro/pound as opposed to the current rate, which also provides for further near term support.

Miton aside, Moore says there are other UK institutions sitting below the notifiable level following the placing earlier in the year and that may be something worth monitoring.

The next update from the company should come next month and a continuation of more recent progress may provide the impetus for what appears to be an overdue re-rating.